What are the risks of carbon offsetting for sustainability?

1 Quality and credibility

One of the main risks of carbon offsetting is that the projects you support may not be as high-quality or credible as they claim to be. There are many different standards and certifications for carbon offsetting, but not all of them are equally rigorous or transparent. Some projects may overestimate their emission reductions, fail to deliver on their promises, or even cause negative social or environmental impacts. To avoid this risk, you should always do your research and choose reputable and verified carbon offset providers, such as those endorsed by the Gold Standard or the Verified Carbon Standard.

2 Additionality and permanence

Another risk of carbon offsetting is that the projects you support may not be additional or permanent. Additionality means that the emission reductions would not have happened without your contribution, and permanence means that they will not be reversed or undone in the future. For example, if you pay for a forest conservation project, but the forest would have been protected anyway, or if it is later destroyed by fire or logging, then your offset is not additional or permanent. To avoid this risk, you should always check the additionality and permanence criteria of the carbon offset projects, and look for evidence of monitoring and verification.

3 Leakage and displacement

A third risk of carbon offsetting is that the projects you support may cause leakage or displacement of emissions. Leakage means that the emission reductions in one place are offset by increases in another place, and displacement means that the emission sources are simply moved from one location to another. For example, if you pay for a project that reduces deforestation in one country, but the demand for timber or agricultural land shifts to another country, then your offset is not effective. To avoid this risk, you should always look for carbon offset projects that address the root causes of emissions, and that have a holistic and systemic approach to sustainability.

4 Greenwashing and complacency

A fourth risk of carbon offsetting is that it may lead to greenwashing and complacency. Greenwashing means that businesses or individuals use carbon offsetting as a way to appear more environmentally friendly than they actually are, and complacency means that they use carbon offsetting as an excuse to avoid making real changes in their behavior or operations. For example, if a company claims to be carbon neutral by buying offsets, but does not reduce its own emissions or improve its efficiency, then it is not truly sustainable. To avoid this risk, you should always treat carbon offsetting as a last resort, and prioritize reducing your own emissions as much as possible.

5 Equity and justice

A fifth risk of carbon offsetting is that it may create or exacerbate issues of equity and justice. Equity means that the benefits and burdens of carbon offsetting are fairly distributed among different groups and regions, and justice means that the rights and interests of the affected communities are respected and protected. For example, if a carbon offset project displaces or harms local people or ecosystems, or if it benefits wealthy or powerful entities at the expense of the poor or marginalized, then it is not ethical or fair. To avoid this risk, you should always consider the social and environmental impacts of carbon offsetting, and look for projects that promote human rights, biodiversity, and local participation.

6 Transparency and accountability

A sixth risk of carbon offsetting is that it may lack transparency and accountability. Transparency means that the information and data about carbon offsetting are clear and accessible, and accountability means that the actors and stakeholders involved in carbon offsetting are responsible and answerable for their actions and outcomes. For example, if a carbon offset project does not disclose its sources, methods, or results, or if it does not have a mechanism for feedback or complaints, then it is not trustworthy or reliable. To avoid this risk, you should always demand transparency and accountability from the carbon offset providers, and look for independent audits and reviews.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?